FX.co ★ Platinum Gains on Safe-Haven Demand

Platinum futures surged beyond $2,200 per ounce, approaching unprecedented levels following heightened geopolitical tensions. This rise was prompted by a recent US offensive against Venezuela and the subsequent apprehension of President Nicolas Maduro over the weekend, leading to an increased demand for safe-haven metals. Additionally, expectations of further interest rate reductions by the US Federal Reserve fueled the upward trend in precious metals. Markets foresee two rate cuts this year, despite the Fed predicting just one. In 2025, platinum recorded an impressive increase of roughly 120%, outperforming gold's yearly growth and marking its most substantial performance to date. Continued supply constraints are pivotal, with significant production areas, particularly South Africa, grappling with underinvestment, operational challenges, and rising expenses, resulting in a market deficit for the third consecutive year. Furthermore, industrial demand has remained robust, particularly driven by internal combustion and hybrid vehicles that use platinum catalysts. This demand gained additional momentum after the EU decided to scale back its proposed combustion-engine ban set for 2035.